In order to thrive in an uncertain economy, companies must adopt business strategies to weather the storms. These three business strategies in an uncertain economy could help the company survive:
Taking Risks
Risk is the essence of business. Businesses face two kinds of risks : sinking-the-boat risk and missing-the-boat risk. Sinking-the-boat risk means the risk of failure. In an uncertain economy characterized by marked inflation and deflation, some entrepreneurs are having second thoughts about starting a business.
However, another kind of risk called missing-the-boat risk which means foregoing opportunities. By choosing not pursue business endeavors, one could lose golden opportunities for progress. Take for instance, the case of The Access Group and Healthcare Performance Partners, its co-founder Charles Hagood said that they lost numerous opportunities at the start of the business because they were not able to recognize opportunities.
Businesses face both risk of failure and risk of missing an opportunity. By being too cautious, especially during recession, opportunities could slip away. There are a number of markets that are untapped or underserved or with lesser competitors. A weak economy can establish new niches.
For example, when banks foreclose on houses, new businesses restoring foreclosed houses sprout everywhere. Being prudent in choosing opportunities is clearly an important step during recession. The risks maybe higher but the opportunities never diminish.
Resilience
Businesses need to be resilient in order to endure unforeseen difficulties like recession, disasters or terrorist attacks. Resilience pertains to the company's ability to recover from difficulties at an acceptable speed. A resilient company does not only withstand the pressures of business but also acquire a competitive advantage in the process.
Resilient companies have the ability to anticipate problems and resolve these problems to avert potential disastrous results. This is the common characteristic shared by highly resilient companies that last through time. Companies such as Nokia, Dell, Toyota and others exhibit this trait.
Embracing New Technology
Albert Einstein once said that "We cannot solve our problems with the same thinking we used when we created them." Embracing new technology requires that one adopts to the modern way of doing things. Internet technology for instance.
Everybody is using the net now or at least has some knowledge of how to use it. It is to the company's advantage therefore to make use of this technology to advance its interests. Creating a website, using SEO, blogging, social networking - these are but a few things a company can do online to promote its products or services.
A good example of embracing new technology would be HP. Instead of booking a flight to meet with international staffs, executives at HP could choose to use the Halo telepresence studios, a real-time video conferencing system. This would alllow company staffs to conduct meetings with several teams simultaneously in all parts of the world. This technology not only cuts costs but also saves energy and time to travel.
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